Instructions On September 1, Northhampton Industries signed a so-month lease for office space, which is effective September 1. Northhampton agreed to prepay the rent and mailed a check for $16,200 to the landlord on September 1 Assume that Northhampton prepares adjusting entries only four times a year on March 31, June 30, September 30, and December 31 Required: 1 Compute the rental cost for each fult month 2. Prepare the journal entry to record the payment of rent on September 1 3 Prepare the adjusting entry on September 30 4 Astume that the accountant pmpares the adjusting entry on September 30 but forgets to record an aqusting entry on December 31. W net income for the year be understated or overstated? by what amount? repaid Rent-Quarterly Adjustments First Question General Journal Final Question Instructions Chart of Accounts Or General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 153 Prepaid Rent 154 Office Supplies on Hand 174 Equipment 179 Accumulated Depreciation LIABILITIES REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 521 Salaries and Wages Expense 532 Utiles Expense 533 Insurance Expense 534 Rent Expense 537 Office Supples Expense greed to prepay the rent and mailed a chec December 31 ber 31. Will net 88 Chart of Accounts LIABILITIES 211 Accounts Payable 231 Salaries and Wages Payable 235 Notes Payable 261 Income Taxes Payable 534 Ken Expense 537 Office Supplies Expense 541 Depreciation Expense 551 Advertising Expense 559 Miscellaneous Expenses 810 Interest Expense 910 Income Tax Expense greed to prepay the December 31, EQUITY 311 Capital Stock 331 Retained Earnings ber 31. W net 8 Or Chart of Accounts First Question Shaded cells have feedback. X Se es Ex Exper 1. Compute the rental cost for each full month. Expens per month Points: s Expe nse 0/1 Expense Feedback Check My Work Consider the number of months covered by the lease. Prepaid Rent-Quarterly Adjustments Instructions Chart of Accounts First Question General Journal Final Question Instructions Chart of Accounts First Question Shaded cells have feedback General Journal GENERAL JOURNAL ATE ACCOUNT TITLE Feedback Check My Work greed to prepay the rent and mailed a check for $16,200 to the landlord on Shaded cty have feedback Score: 0/33 IMPACT ON FINANCIAL STATEMENTS BALANCE SHEET INCOME STATEMENT LABUTE EQUITY REVENGE DPG BET SCOP POST REF DENT CREDIT Pont 10/2 GENERAL JOURNAL DATE ACCOUNT TITLE Feedback Check My Work Score: 0/35 IMPACT ON FINANCIAL STATEMENTS BALANCE SHEET DENT CREDIT ATS BUTES EQUITY PAGE INCOME STATEMENT HET SCOR Fo 2018 Chart of Accounts First Question Shaded cells have feedback X General Journal Final Question joreed to prepay the rent and maled a check for $16,200 to the bord Shaded cells have ve Shaled cells have reso 4. Assume that the accountant prepares the adjusting entry on September 30 but forgets to record an adjusting entry on December 31 Will net income for the year be understated or overstated by what amount? overstated by s Feedback Check My Work Revenues expenses net income How does incorect recording of expenses such as not recording all expenses affect net income? Port 112